HISTORY 


OF 


Pasadena’s  Municipal  Light 
and  Power  Plant 


By  C.  WELLINGTON  KOINER 

General  Manager 

and  Mechanical -Electrical  Engineer 


DISTRIBUTION  OF  THE  DOLLAR  OF  INCOME 
FOR  THE  ENTIRE  PERIOD 
OF  TWELVE  YEARS 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/historyofpasadenOOkoin 


TYPE  OF  ORNAMENTAL  STREET  LIGHTING 


History  of  Pasadena’s  Municipal  Light  and 
Power  Plant 

By  C.  WELLINGTON  KOINER, 

General  Manager 


In  view  of  the  large  number  of  inquiries  made  from  time  to  time  con¬ 
cerning  the  historical  data  of  Pasadena’s  Municipal  Light  and  Power  plant, 
this  history  is  being  prepared.  The  facts  in  connection  with  the  institution, 
growth  and  development  are  being  set  forth  here  with  a  view  of  supplying 
the  information  sought,  not  only  from  those  who  have  recently  become 
citizens  of  Pasadena,  but  those  living  in  other  cities,  and  their  officials  who 
are  constantly  making  inquiries  for  information. 


THE  REASON 

The  necessity  for  Pasadena  establishing  its  electric  utility  was  first, 
for  the  lack  of  good  service  for  street  lighting  and  general  service ;  and 
*  second,  the  high  rates  charged  for  electrical  energy  at  the  time  the  people 

decided  to  install  their  electric  utility. 


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BOND  ISSUES 

On  May  3,  1906  the  citizens  voted  $125,000.00,  the  first  installment 
of  bonds.  This  carried  and  had  just  thirty-two  more  than  the  necessary 
two-thirds  majority.  The  second  bond  issue  for  $50,000.00  for  enlarging 
the  plant  and  completing  the  street  lighting  system  was  voted  on  February 
20,  1908.  The  third  and  last  bond  issue  for  $150,000.00  was  voted  Feb¬ 
ruary  11,  1909.  At  this  time  the  street  lighting  system  had  been  completed 
and  commercial  service  had  been  rendered  to  quite  a  number  of  people 
since  October,  1908. 

In  addition  to  bonds  issued  there  was  a  direct  tax  levy  in  1906-07  of 
eighteen  cents  on  every  hundred  dollars  of  assessed  property  valuation, 
with  a  result  that  $52,332.35  was  raised  in  lieu  of  bonds. 

The  rate  was  set  at  eight  cents  instead  of  the  Company’s  rate  of  twelve 
and  one-half  cents,  less  10%,  and  naturally  this  wide  difference  made  people 
eager  to  extend  the  service  over  the  entire  city.  Therefore,  they  voted  seven 
to  one  for  the  third  and  last  issue  of  bonds  to  extend  their  plant  over  the 
entire  city  at  that  time,  there  being  only  337  votes  against  the  proposition. 
These  bond  issues  were  not  as  easy  as  the  reader  might  imagine. 

CITY’S  RIGHTS  CONTESTED 

The  City’s  rights  were  contested  in  the  courts  by  the  City’s  competitor, 
and  every  obstacle  put  in  the  way  to  block  the  City  in  starting  its  enter¬ 
prise.  The  rights  of  the  City  in  the  first  bond  issue  were  carried  to  the 
higher  courts,  and  there  decided  in  favor  of  the  City.  At  that  time  the 
City  was  ably  represented  by  Hon.  J.  Perry  Wood,  who  was  then  City 
Attorney. 


RATES  PAID  BEFORE  CITY  BUILT  ITS  UTILITY 


▼ 


At  the  time  the  people  began  to  talk  about  building  an  electric  utility 
the  rates  for  electrical  energy  were  fifteen  cents  per  kwh.,  but  a  cut  was 
made  from  this  rate  to  twelve  and  one-half  cents.  This  was  being  charged 
at  the  time  the  City  entered  the  field  and  established  the  above  rate  of  eight 
cents  per  kwh.  for  domestic  service  and  eighty  cent  minimum  instead  of 
one  dollar,  with  a  top  rate  of  four  cents  for  power  ranging  down  to  as 
low  as  one  and  two-tenths  cents.  This,  it  will  be  observed,  was  a  little 
more  than  half  what  had  been  charged  before  the  City  entered  the  field, 
and  at  the  same  time  the  service  in  those  days  was  not  what  the  service  is 
today  or  since  the  City  established  its  electric  utility. 

RATES  OFFERED  AFTER  CITY  STARTED  ITS  UTILITY 

It  may  be  interesting  to  even  those  who  are  familiar  with  the  history 
of  this  utility  to  relate,  especially  for  the  benefit  of  our  newcomers,  how 
the  City’s  competitor  offered  to  furnish  all  of  the  electrical  energy  that  a 
family  could  use  in  a  month  for  $1.25  per  month  flat  rate.  The  spur  of 
competition  was  too  much  for  the  private  company,  who  had  long  served 
the  community  indifferently  and  at  a  high  price,  so  they  decided  to  elimi¬ 
nate  the  City  by  making  it  unprofitable,  and  if  possible,  having  the  City 
follow  into  a  cut-rate  war  to  the  point  where  the  plant  would  have  to  be 
sustained  by  taxation.  However,  into  this  trap  the  City  did  not  fall.  It 
continued  what  was  a  fair  and  profitable  rate,  one  that  would  sustain  the 
plant  and  enable  the  City  to  give  a  high-class  service.  In  order  to  prevent 
the  private  company  from  killing  or  eating  its  rival  alive,  an  ordinance  was 
passed  requiring  that  the  company  must  sell  all  their  electrical  energy  by 
meter  measurement.  This  prevented  the  flat  rate  which  had  been  set  up 
as  a  bait  to  attract  the  owners  of  the  City’s  electric  utility. 

The  Company  immediately  filed  a  new  schedule  of  rates,  but  they  were 
lower  than  those  charged  by  the  City.  The  eight  cent  rate  was  continued 
by  the  City  until  such  time  as  the  earnings  justified  a  further  reduction, 
which  was  made  to  seven  cents.  The  Company  dropped  to  five  cents,  a 
difference  of  two  cents  per  kwh.  However,  the  citizens  of  Pasadena  had 
been  paying  fifteen  cents  per  kwh.  prior  to  the  installation  of  the  Municipal 
Light  and  Power  Plant,  and  this  was  not  forgotten  by  a  large  number,  who 
continued  to  patronize  their  own  plant,  even  though  it  cost  more  than  if 
they  had  purchased  their  electricity  from  their  own  competitor.  This  sup¬ 
port  enabled  the  plant  to  show  what  could  be  done,  and  as  the  business 
grew  in  volume  and  operating  costs  were  reduced,  the  rate  was  further 
reduced  to  five  cents  per  kwh.  for  light,  scaling  down  to  three  cents,  and 
fifty  cents  minimum,  and  a  maximum  of  four  cents  per  kwh.  for  power, 
scaling  down  to  as  low  as  one  and  two-tenths  cents.  The  Company,  the 
City’s  competitor,  immediately  reduced  its  rates  to  a  maximum  of  four 
cents  per  kwh.,  stating  that  they  would  go  below  any  rate  made  by  the  City. 

This  difference  in  rates  continued  until  September,  1913.  However, 
at  this  time  the  number  of  consumers  on  the  City’s  lines  was  5,000,  show¬ 
ing  the  extent  of  the  loyalty  of  the  people  of  Pasadena  in  supporting  their 
own  plant  at  a  rate  that  was  twenty-five  per  cent  higher  than  its  com¬ 
petitor’s  rates. 


4 


During  this  period  the  city  had  the  legal  right  to  fix  the  rates  for 
electrical  energy,  they  could  have  regulated  the  rates  of  any  private  cor¬ 
poration  to  the  same  as  those  charged  by  the  City,  and  the  writer  favored 
this  action,  as  he  had  always  believed  that  a  large  corporation  furnishing 
electrical  energy  to  several  communities  from  a  common  hydro-electric 
system  should  not  play  one  community  against  another  by  selling  current 
below  cost  in  one  to  throttle  a  competitor  located  there,  and  recoup  its 
losses  bv  charging  a  higher  rate  in  all,  or  some,  of  the  other  districts. 

ACCOUNTING  SYSTEM 

It  might  be  stated  at  this  time  that  contrary  to  the  predictions  of  the 
City’s  opponent,  the  Lighting  Department’s  accounting  system  was  such 
that  it  was  known  at  all  times  just  what  results  were  being  obtained.  The 
National  Electric  Light  Association’s  accounting  system  in  principle  has 
always  been  followed  by  the  Light  Department,  and  therefore,  the  costs 
of  producing  and  distributing  electrical  energy  are  followed  closely,  thereby 
enabling  the  management  to  keep  the  business  in  hand  at  all  times  by  know  ¬ 
ing  exactly  what  results  were  being  obtained. 

MAKING  THEM  SHOW  THE  FACTS 

In  March,  1913,  the  City  of  Pasadena  finally  passed  an  ordinance  to 
take  effect  some  months  later,  regulating  the  power  rates  to  equal  those 
charged  and  fixed  by  the  Utilities  Board  of  the  City  of  Los  Angeles,  with 
the  provision  that  either  the  Municipal  Light  Department  or  the  private 
corporation  in  competition  with  the  City  could  file  a  schedule  of  rates 
lower  than  those  fixed  by  the  City,  providing  however,  that  with  the 
schedule  was  filed  an  inventory  of  their  property  and  a  statement  of  income 
and  expenses,  showing  that  their  business  was  earning  at  least  four  per 
cent,  on  the  legitimate  investment  in  the  property. 

To  comply  with  the  ordinance  the  City  immediately  filed  its  schedule 
of  property — I  might  add  here  that  the  City  has  always  complied  with 
ordinances  of  this  character — showing  that  we  were  earning  at  least  four 
per  cent,  on  our  investment.  The  City’s  competitor,  however,  did  not 
file  a  schedule  until  January,  1914,  at  which  time  they  asked  to  lower  their 
power  rates  to  those  employed  by  the  City  of  Pasadena.  In  their  schedule 
of  property  the  Company  figured  an  investment  against  Pasadena  as  of 
December  31,  1913,  of  $940,461.44  tangible  property,  including  hydro¬ 
electric  and  production  property,  to  which  they  added  $235,115.36  to  cover 
going  value  and  other  intangibles.  In  submitting  this  statement  of  prop¬ 
erty,  income  and  expenses,  they  showed  a  deficit  of  $9,286.26,  not  includ¬ 
ing  interest  on  tangible  investment,  which  if  added  would  increase  their 
deficit  to  approximately  $46,904.72.  The  City  Commission  did  not  acqui¬ 
esce  in  this  reduction  at  once,  and  notified  the  Company’s  representative 
to  explain  to  them  how  they  were  going  to  turn  the  deficit  of  previous  years 
into  profit  the  coming  year,  so  as  to  show  a  return  of  at  least  four  per  cent, 
on  their  investment.  Inasmuch  as  the  burden  of  further  loss  was  all  on 
the  Company,  they  were  permitted  to  lower  the  rates  to  those  charged  by 
the  City  for  power. 


¥ 


5 


TYPE  OF  PARK  LIGHTING 


PREVENTING  DISCRIMINATION 


Relative  to  the  lighting  rates  of  the  power  company,  the  Unjust  Com¬ 
petition  Act,  Senate  Bill  53,  Chapter  276,  was  passed  by  the  State  Legis¬ 
lature.  This  bill  was  prepared  by  the  Hon.  Senator  Wm.  J.  Carr,  form¬ 
erly  our  City  Attorney,  and  provided  for  the  prevention  of  unfair  practice 
on  the  part  of  utility  or  other  corporations  which  furnished  commodities 
in  one  community  and  discriminated  against  other  communities.  It  was 
this  Act  which  resulted  in  the  Company’s  asking  to  equalize  their  rate  the 
same  as  those  charged  by  the  City  of  Pasadena  in  September,  1913.  As 
is  evident,  the  corporation  was  compelled  to  choose  between  doing  this 
and  lowering  their  rates  in  other  communities  served  to  those  rates  it  had 
been  freely  giving  in  the  City  of  Pasadena.  Since  the  equalization  of  rates 
the  City  has  increased  its  customers  to  11,127,  as  of  August  31,  1919. 

CITY’S  OFFER  TO  PURCHASE  ITS  COMPETITOR’S  SYSTEM 

At  the  time  the  first  bonds  were  issued  to  build  the  City  plant,  no 
direct  offer  was  made  to  the  Company  by  the  City  to  purchase  its  system. 
However,  in  1909,  when  the  bond  issue  for  extending  the  municipal  com¬ 
mercial  light  and  power  service  carried  by  a  vote  of  seven  to  one,  a  propo¬ 
sition  was  made  to  the  private  corporation  for  the  purchase  of  its  distribut¬ 
ing  system,  and  also  for  the  purchase  of  electrical  energy,  providing  it 
could  be  obtained  cheaper  than  the  City  could  generate  it  with  its  steam 
plant.  The  private  corporation  made  a  counter  proposition  to  purchase 
the  City’s  plant.  The  facts  are,  the  City  was  in  the  market  to  purchase, 
but  not  to  sell.  The  City’s  answer,  as  a  result  of  these  negotiations,  was 
a  redoubled  effort  to  enlarge  its  plant  and  increase  its  business  with  the 
proceeds  of  the  bond  issue  of  $150,000.00. 

CIVIC  INDIFFERENCE 

It  is  not  quite  clear  to  people,  other  than  those  living  in  Pasadena, 
why  everybody  in  Pasadena  did  not  use  light  and  power  from  its  own 
system.  The  answer  is  that  a  large  number  of  officials  of  the  Southern 
California  Edison  Company,  and  during  the  period  of  keenest  competition, 
approximately  seventy-six  of  its  stockholders,  had  their  homes  in  Pasadena, 
and  as  a  matter  of  course,  the  Company  brought  to  bear  every  possible 
influence  against  the  successful  operation  of  the  municipal  plant.  The 
question  can  be  further  answered  by  stating  that  a  corporation,  receiving 
liberal  rates  for  its  service  in  other  communities,  over  a  diversified  system, 
often  uses  a  part  of  the  money  thus  obtained,  through  the  medium  of  news¬ 
papers,  periodicals,  paid  solicitors  and  other  means,  to  prevent  a  municipal 
enterprise  of  the  character  of  Pasadena’s  from  succeeding. 

A  MILD  STATEMENT  OF  THE  COMPANY’S  ATTACKS 

It  was  an  easy  matter  to  write  up  very  plausible  articles,  attacking 
the  City’s  enterprise  and  the  wisdom  of  it,  and  have  an  interested  security 
holder  of  the  corporation,  who  lived  in  Pasadena,  sign  it.  This  was  a 
favorite  means  of  attack,  but  was  always  promptly  met  with  facts,  and 
these  attacks  of  the  Company  always  worked  out  in  the  end  as  a  boomer¬ 
ang  against  the  corporation  itself. 


7 


The  corporation  always  employed  a  large  corps  of  solicitors,  ranging 
as  many  as  ten  or  twelve  at  times,  who  canvassed  the  City’s  users  with  a 
view  of  securing  them  as  customers  of  the  corporation.  Strangers  moving 
into  the  city,  not  understanding  the  history  of  the  fight,  would  often  be 
influenced  to  cut  out  the  City’s  service  and  take  the  corporation’s.  The 
City  necessarily  employed  a  corps  of  solicitors  to  counteract  the  corpora¬ 
tion’s  efforts  in  this  connection.  The  result  has  been  that  some  years  we 
would  connect  two  thousand  meters  (in  round  figures),  and  disconnect 
one  thousand  to  twelve  hundred.  However,  the  gain  has  always  been  in 
favor  of  the  City,  but  it  made  gathering  the  business  more  expensive  than 
it  otherwise  would  have  been. 

I  might  add  that  it  has  been  a  long,  hard  fight,  extending  over  a  period 
of  twelve  years,  the  strenuousness  of  which  has  only  been  relieved  during 
the  period  of  the  war,  through  an  offer  to  purchase  our  competitor’s 
system,  which  is  still  pending. 

FIDELITY  OF  THE  PATRONS 

It  required  faithfulness  and  loyalty  on  the  part  of  the  citizens  during 
the  history  of  building  and  putting  into  operation  their  electric  utility,  to 
pay  to  themselves,  month  after  month,  fully  twenty-five  per  cent,  more 
than  the  private  corporation  charged  for  electrical  energy.  The  people 
of  small  means  have  loyally  and  faithfully  patronized  their  own  plant, 
extending  their  limited  custom  as  their  contribution  to  make  municipal 
ownership  a  success.  The  residence  consumer  was,  and  has  been,  the  back¬ 
bone  of  the  City’s  electric  utility,  since  the  City  began  furnishing  electrical 
energy  to  the  residence  consumer.  In  this  connection,  the  City  enjoys  a 
mixed  patronage  of  large  and  small  users.  This  not  only  applies  to  the 
residences,  but  to  all  classes  of  business,  until  at  the  present  time  the  City 
has  about  sixty-seven  per  cent,  of  the  business. 

During  one  of  the  most  turbulent  periods  in  the  history  of  the  plant, 
one  of  the  ardent  supporters  of  the  Department  portrayed  the  turbulent 
situation  as  follows: 

A  SONG  OF  MUNICIPAL  LIGHT 

Dedicated  to  City  Attorney  J.  Perry  Wood,  and 
C.  W.  Koiner,  General  Manager 

By  Mrs.  Grinnell 
Pasadena,  June  28 

Sing  Ho !  for  municipal  light, 

Municipal  Light! 

It’s  afraid  o’  the  dark  I  be — 

The  dark-o-the-moon  on  the  sea 
Where  the  city’s  bark  rides 
On  the  changing  tides 
With  the  sharks  on  all  sides  o’  me. 

Sing  Ho!  for  municipal  light, 

Municipal  Light! 

It’s  afraid  o’  the  dark  I  be — 

When,  in  Love’s  sweet  society, 

We  sit  holding  hands 
On  the  shifting  sands, 

My  little  sweetheart  and  me. 

8 


\ 


TYPE  OF  PORCH  LIGHTING 


Sing  Ho!  for  municipal  light, 

Municipal  Light! 

It’s  afraid  o’  the  dark  I  be — 

When  I  sit  in  the  sanctua’ree, 

And  the  preacher  he  hints 

At  the  awful  footprints 

O’  the  De’il  that  is  hard  after  me. 

Sing  Ho !  for  municipal  light, 

Municipal  Light! 

It’s  afraid  o’  the  dark  1  be — 

When  my  lawful  Affini-tee 
Hits  me  square  in  the  rib 
At  a  cry  from  the  crib, 

And  I  rise  to  take  up  the  ba-bee. 

Sing  Ho!  for  municipal  light, 

Municipal  Light! 

It’s  afraid  o’  the  dark  I  be — 

Afraid  that  my  sweetheart,  and  me, 

And  the  preacher  that  hints 

At  the  awful  footprints 

Will  get  mixed  in  the  dreadful  melee. 

Turn  on  the  municipal  light, 

Municipal  Light! 

Let  it  shine  for  Prosperi-tee 
On  the  city  I  dwell  in,  and  me, 

My  Sweetheart,  the  priest,  and  the  crib — 
And  whatever  may  cry  in  the  crib — 

And  the  sharks  on  all  sides  o’  me. 


THE  FAVORITE  MEANS  OF  ATTACK 

In  the  height  of  the  campaign  for  business  on  the  part  of  the  City, 
both  of  the  newspapers  heartily  supported  the  City.  However,  the  News 
changed  hands,  and  at  the  same  time  changed  its  policy.  Month  after 
month  it  made  its  attacks,  trying  to  pick  to  pieces  all  the  reports  issued  on 
the  operation  of  the  City’s  electric  utility,  all  of  which  finally  acted  as  a 
boomerang,  compelling  the  paper  to  change  its  management  on  account  of 
the  fact  that  the  people  were  suspicious  as  to  the  intentions  of  the  owners 
of  the  paper  and  its  purposes  in  the  community.  The  paper  even  changed 
hands,  but  that  failed  to  arrest  its  downward  flight,  until  finally,  it  was 
bought  out  by  friendly  interests,  and  again  merged  into  the  ranks  of  the 
City’s  constant  supporters. 

The  Star,  which  is  now  the  Star-News,  has  always  been  a  faithful 
supporter  of  the  City’s  municipal  utility  and  deserves  great  credit  for  its 
constant  support  and  help  extended  in  the  years  when  help  was  greatly 
needed. 


10 


ALL  PROMISES  KEPT 


Time,  however,  has  given  added  proof  of  the  correctness  of  all  reports 
that  have  been  issued  in  connection  with  the  operation  of  the  Department. 

Every  promise  that  has  ever  been  made  on  the  part  of  the  management 
of  the  Department  has  been  kept.  “The  proof  of  the  pudding  is  in  the 
eating,”  and  “not  in  the  promises  of  the  cook,”  and  during  the  past  twelve 
years  we  have  had  sufficient  time  to  digest  the  pudding,  without  the  ill 
effects  predicted  by  the  City’s  opponents. 

An  enterprise  of  this  kind  must  be  judged  over  a  period  of  years,  not 
one  year  or  two  years.  No  business  is  judged  on  the  results  of  one  year’s 
operation.  We  have  now  had  sufficiently  long  period  of  operation  to  judge 
the  real  worth  of  the  enterprise.  In  fact,  we  have  passed  through  a  period 
of  stress,  owing  to  world-wide  conditions  that  many  private  utilities  have 
not  been  able  to  stand  up  under. 


TYPE  OF  ORNAMENTAL  STREET  LIGHTING 


The  balance  sheet  as  of  June  30,  1919  is  submitted  here 


Balance  Sheet  as  of  June  30,  1919 
ASSETS 


Property  Account  . 

Real  Estate,  Station  Equipment,  Overhead  & 
Underground  Lines,  Transformers,  Meters, 


etc . $993,079.85 

Less  Depreciation  Reserve  to  June  30,  1919.  .  .  .  319,335.27 


Total  Depreciation  Reserve  to  June  30,  1919.  .  323,978.17 
Less  replacement  1915-1919  .  4,642.90 


Net  Depreciation  Reserve .  319.335.27 

Inventories  . 

Accounts  Receivable  . 

Commercial  Light  and  Power . $  12,629.17 

City  Streets  and  Buildings .  8,571.00 

Sundry  Accounts  .  2,218.40 


Cash  . 

Municipal  Lighting  Fund .  29,083.32 

Office  Cash .  300.00 


Investments — Liberty  Loan  Bonds 


for  study : 

$673,744.58 

53,614.00 

23,418.57 

29,383.32 

125,100.00 

$905,260.47 


12 


'I 


Balance  Sheet  Continued 


LIABILITIES 


Funded  Indebtedness  .  $234,275.00 

Total  Bonds  Issued . $327,000.00 

1902  4%  . $  2,000.00 

1906  4%  .  125,000.00 

1908  4%  %  .  50,000.00 

1909  4%  .  150,000.00 


Less  Bonds  Redeemed .  92,725.00 

Paid  out  of  Taxes .  68,250.00 

Paid  out  of  Operating  Surplus  24,475.00 


Premium  on  Bonds  .  3,836.43 


.  228,329.56 

52.332.35 

2,299.95 

6,000.00 

1,900.00 

68,250.00 

97,547.26 


Contribution  From  Taxes 

Taxes  of  Year  1906 . 

Street  Lighting  Appropriation.  . 
Land  for  Power  Plant  Building 
Land  for  Pearl  St.  Warehouse. 

Bonds  Redeemed  . 

Bond  Interest  Paid . 


Accounts  Payable  and  Deposits .  $  18,155.79 

Reserve  for  Interest .  126,954.79 

Charged  on  Total  Average  Investment . $257,423.05 

Paid  Bond  Int.  from  Taxes.  .  .  .$97,547.26 

Paid  Bond  Int.  from  Surplus.  .  .  32,921.00  130,468.26 


Surplus  .  293,708.90 

Balance  on  Account  July  1,  1918 . $227,714.06 

Gain  for  Year  ended  June  30,  1919 .  65,994.84 


Actual  Operating  Gain . $85,405.87 

Less  Increase  in  Int.  Reserve.  .  .  .  19,411.03 


$905,260.47 

Total  Assets  with  Property  depreciated.  .  .$905,260.47 


3 


In  analyzing  this  balance  sheet  it  will  be  found  that  the  total  cost  of 
the  plant  was  $993,079.85,  while  there  has  been  deducted  a  charge  of 
$319,335.27  to  cover  depreciation.  It  will  be  conceded  even  by  the  unini¬ 
tiated  that  this  would  appear  to  be  a  liberal  allowance  for  this  purpose. 
In  fact,  when  the  maintenance  of  the  plant  is  taken  into  consideration,  the 
property  has  not  depreciated  physically  to  the  extent  that  it  has  been 
debited. 

Adding  to  the  remaining  value  of  the  plant  account,  the  inventories, 
accounts  receivable,  cash,  Liberty  Bonds  purchased  and  owned  by  the 
Department,  the  total  assets,  after  the  property  has  been  depreciated, 
amount  to  $905,260.47.  The  total  assets,  without  depreciation,  would 
be  $1,224,595.74. 

In  analyzing  the  liabilities  it  will  be  noted  that  the  total  amount  of 
bonds  issued  was  $327,000.00;  premium  on  bonds,  $3,836.43;  contribu¬ 
tion  from  taxes,  $228,329.56  (which  was  in  lieu  of  bonds),  making  the 
total  liabilities  for  the  purchase  of  the  plant  from  bonds  and  taxation, 
$559,165.99.  The  difference  between  the  original  cost  of  the  plant  and 
this  sum  represents  the  amount  that  has  been  put  back  into  the  plant  from 
its  earnings,  and  represents  reserves,  surplus,  etc. 

It  will  be  observed  that  the  liquid  assets  amount  to  $231,515.89,  as 
of  June  30,  1919.  The  outstanding  bonds  amount  to  $234,275.00. 

SAVING  EFFECTED  TO  THE  PEOPLE 

In  addition  to  the  results  shown  by  the  preceding  balance  sheet,  the 
saving  resulting  to  the  users  of  electrical  energy  in  Pasadena  since  the  instal¬ 
lation  of  their  electric  utility,  is  now  represented  by  the  sum  of  $1,700,- 
856.58.  This  large  sum  of  money  has  been  kept  in  the  pockets  of  our 
citizens  and  is  the  result  of  the  difference  in  rates  charged  before  the  city 
entered  the  lighting  business  and  the  rates  charged  since  in  our  neighbor¬ 
ing  cities,  except  Los  Angeles,  by  the  City’s  competitor.  This  annual  sav¬ 
ing  is  arrived  at  each  year  by  calculating  in  the  same  way  on  the  basis  of 
the  number  of  kilowatt  hours  sold.  This  saving  for  the  past  year  amounted 
to  $223,785.48,  and  is  the  same  as  if  the  city  had  $5,595,000.00  invested 
for  which  it  received  4  per  cent,  per  annum. 

At  the  present  time  the  City’s  competitor  receives  a  maximum  rate, 
including  surcharge,  of  eight  cents  in  neighboring  cities  (except  Los 
Angeles)  Alhambra,  Long  Beach,  Santa^  Monica,  etc.,  while  if  the  same 
rate  was  charged  for  electric  energy  used  in  the  City  of  Pasadena,  it  would 
amount  to  an  increased  cost  for  electric  energy  of  $223,785.48.  This  is 
on  the  basis  of  11,500,000  kilowatt  hours  of  electric  energy  sold  in  the 
City  of  Pasadena.  The  maximum  rate  of  the  City  is  only  five  cents  per  kwh. 

These  results  should  cause  all  citizens  in  Pasadena  to  appreciate  the 
value  of  this  electric  utility  to  them,  in  order  that  their  vigilance  may  be 
such  as  to  maintain  this  success.  For  after  all,  eternal  vigilance  is  the  price 
that  must  be  paid  for  the  continued  successful  operation  of  this  utility. 

In  addition  to  this  saving,  we  must  consider  the  economies  of  retain¬ 
ing  at  home  the  pay-roll  of  this  Department,  which  amounted  to  $64,- 
858.25  for  labor  alone  for  the  year,  and  which  is  practically  all  disbursed 
in  the  City  of  Pasadena. 


14 


The  building  and  operation  of  this  utility  was  a  combined  engineering 
and  business  proposition.  Not  only  was  it  a  business  and  engineering  enter¬ 
prise,  but  a  very  important  public  matter.  As  an  engineering  and  business 
proposition,  under  the  circumstances  and  conditions,  it  was  necessary  to 
stretch  the  dollar  to  the  elastic  limit,  and  at  the  same  time  provide  reliable 
equipment  and  get  along  without  display.  To  provide  and  supply  all 
necessary  finances,  it  was  necessary  to  plan  considerable  in  advance  and 
economize  to  the  limit,  and  at  the  same  time  not  stint  in  the  service.  The 
best  equipment  has  been  used  throughout.  However,  the  power  plant 
buildings  have  been  temporary,  the  machinery  having  been  housed  in  this 
way  until  such  time  as  the  financial  condition  of  the  Department  warranted 
the  erection  of  a  permanent  power  plant  building.  This  is  one  of  the  things 
planned  for  the  future,  and  in  due  course  will  be  erected,  covering  the 
present  power  plant  equipment. 

BENEFITS  OF  NEW  IDEAS 

The  plant  management  has  always  brought  within  reach  of  customers 
and  drawn  to  their  attention,  everything  new  in  the  art,  the  citizens  receiv¬ 
ing  the  benefit  of  all  new  ideas  in  the  electrical  world.  On  March  15, 
1911,  the  Department  sent  out  a  circular  showing  the  effectiveness  of 
Tungsten  lamps  at  that  time.  It  was  pointed  out  that  these  lights  would 
cut  the  bills  in  two,  or  better.  This  was  contrary  to  the  practice  of  private 
utilities  of  this  class  at  that  time.  This  type  of  lamp  was  also  used  in  1908 
for  street  illumination,  being  one  of  the  first  large  street  series  installations 
installed  in  the  United  States. 

This  applies  to  the  management  of  the  business  in  detail.  The  office 
equipment  of  this  Department  has  always  consisted  of  the  most  modern 
equipment;  in  fact,  the  Municipal  Light  Department  was  one  of  the  first 
to  adopt  the  billing  and  posting  machines,  which  were  installed  over  three 


and  a  half  years  ago.  This  applies  to  all  other  office  machinery,  which  was 
adopted  and  used  just  as  soon  as  it  was  found  to  be  reliable  and  effective, 
resulting  in  a  saving  and  expediting  our  work. 

RATES 

Maximum  rate  charged  by  private  company 

before  the  plant  was  started .  15c  per  kwh 

Maximum  rate  charged  by  private  company 

at  the  time  the  plant  was  started . 12%c  per  kwh. 

less  10% 

Maximum  rate  charged  by  Municipal  Light 

Department  .  8c  per  kwh. 


All  rates  have  since  been  reduced  to  those  set  by  the  Municipal  Light 
and  Power  Department,  and  at  this  time  the  rates  charged  in  Pasadena 
for  light  and  power  are  as  follows: 

LIGHT 

First  100  kwh . 05  per  kwh. 

Next  400  kwh . 04%  per  kwh. 

Next  500  kwh . 04  per  kwh. 

Next  1000  kwh . 03%  Per  kwh. 

Over  2000  kwh . 03  per  kwh. 

Minimum  charge . 50  per  month 


15 


POWER 


First 

100  kwh . 

. 04 

per  kwh. 

Next 

400  kwh . 

. 024 

per  kwh. 

Next 

1000  kwh . 

. 02 

per  kwh. 

Next 

500  kwh . 

. 019 

per  kwh. 

Next 

1000  kwh . 

. 018 

per  kwh. 

Over 

3000  kwh . 

. 012 

per  kwh. 

Minimum  charge . 

. $1.00 

per  month 

As  long  as  production  costs  remain  the  same  with  the  City  as  they 
are  today,  these  rates  may  prevail.  We  have  been  fortunate  indeed  during 
the  war  period  in  not  having  to  increase  our  rates.  There  would  be  no 
hesitancy  on  the  part  of  the  management  to  increase  rates  if  it  was  neces¬ 
sary,  to  the  amount  that  would  sustain  all  proper  charges  in  the  operation 
of  this  utility.  We  trust,  however,  that  our  operating  costs  can  be  so 
maintained  in  the  future  that  it  will  not  be  necessary  to  increase  the  rates 
above  what  they  are  now,  and  it  will  not  be  necessary,  unless  through 
some  unforseen  reason  the  cost  of  production  and  generation  increases 
beyond  what  it  is  today,  to  such  an  extent  that  we  would  be  compelled  to 
increase  the  rates. 

NO  INCREASE  OF  RATES  DURING  THE  WAR 

In  this  connection,  it  might  be  pointed  out  that  even  during  the  war 
period  had  it  been  necessary  to  increase  our  rates  to  six  cents,  it  would  at 
the  same  time  have  been  two  cents  lower  than  that  charged  by  our  com¬ 
petitor  in  neighboring  cities.  As  it  is  our  maximum  rate  remains  at  five 
cents,  while  our  competitor’s  maximum  rate  was  raised  to  eight  cents  per 
kwh.  in  neighboring  cities,  except  Los  Angeles.  Our  power  rate  still 
remains  one  of  the  lowest  in  the  land,  starting  at  four  cents  and  scaling 
down  to  one  and  two-tenths  cents  per  kwh. 


SUMMARY  OF  TWELVE  YEARS’  OPERATION 


Operating 


Receipts 

Expenses 

Interest 

Depreciation  Surplus 

1906-07 

$  997.09 

$  4,466.62 

1907-08 

23,425.64 

17,688.71 

$  8,771.92 

9,490.64 

1908-09 

45,875.76 

21,431.73 

11,454.47 

11,728.07 

$  1,261.49 

1909-10 

74,935.32 

36,068.56 

14,909.24 

15,817.05 

8,140.47 

1910-11 

110,011.10 

56,570.95 

18,387.79 

17,902.69 

17,149.67 

1911-12 

123,485.11 

63,700.30 

21,627.37 

19,528.66 

18,628.78 

1912-13 

138,889.41 

70,073.45 

20,728.54 

'  24,529.33 

23,558.09 

1913-14 

176,431.30 

96,641.66 

23,020.47 

27,408.25 

29,360.92 

1914-15 

193,505.11 

100,945.34 

24,968.50 

30,345.04 

37,246.23 

1915-16 

214,735.27 

107,027.09 

26,616.40 

41,740.67 

39,351.11 

1916-17 

248,933.45 

310,453.66 

28,331.96 

38,087.79 

52,060.04 

1917-18 

256,427.70 

154,335.70 

29,374.92 

40,520.48 

32,196.60 

1918-19 

274,530.85 

136,891.66 

29,231.47 

42,412.88 

65,994.84 

Deficit 

$  5,463.71 
12,525.63 


It  will  be  observed  that  the  plant  started  with  part  of  the  street  light¬ 
ing  system  only,  the  first  year;  we  did  not  do  any  commercial  business  until 
the  latter  part  of  1908,  so  in  charging  interest  and  depreciation  on  the  value 
of  the  plant  for  the  full  time  a  deficit  was  shown  for  the  first  two  years. 
However,  this  was  soon  wiped  out  by  the  application  of  the  surplus,  which 
followed  after  this  time,  and  which  has  accumulated  to  $293,708.90  at 
the  present  time. 


16 


PATRONAGE  NECESSARY  TO  SUCCEED 


It  must  not  be  lost  sight  of  that  it  is  the  patronage  that  enables  the 
City  to  make  and  hold  the  low  rates.  But  for  the  patronage  of  its  owners 
the  rates  could  not  be  maintained  as  low  as  they  are,  because  it  is  the 
volume  of  business  that  enables  the  Department  to  generate  and  distribute 
electrical  energy  at  the  present  rates.  Therefore,  in  order  that  the  present 
low  rates  may  continue,  this  patronage  must  be  loyally  continued,  insuring 
at  all  times  the  best  service  at  the  lowest  rates. 

In  this  connection,  many  ask  the  question,  “What  is  the  matter  with 
the  man  who  does  not  patronize  his  own  electric  utility?”  with  the 
further  searching  question,  “What  kind  of  a  citizen  is  he  who  does  not 
appreciate  the  benefits  sufficiently  to  co-operate  with  seventy  per  cent,  of 
the  people  who  willed  to  establish  and  support  this  City  enterprise?” 

CIVIC  DUTY 

In  spite  of  an  honest  difference  of  opinion  that  may  have  existed  at 
the  inauguration  of  the  plant,  after  more  than  sixty-six  per  cent,  of  the 
people  decided  to  launch  the  enterprise,  all  others  should  loyally  enter  into 
this  spirit.  To  hang  back  and  fight  a  proposition  afterwards,  is  to  fight 
one’s  city.  This  is  doing  the  opposite  of  what  we  are  teaching  today — 
namely,  loyalty  to  our  city  government,  state  government,  national  gov¬ 
ernment  .  There  is  not  very  much  patriotism  shown  in  the  disposition  to 
knock  an  enterprise  that  the  City  has  once  entered  upon  by  so  large  a 
majority.  It  is  our  opinion  that  when  over  sixty-six  per  cent,  of  the  people 
decide  on  a  policy,  all  of  the  people  should  carry  it  through,  and  endeavor 
to  make  it  one  hundred  per  cent,  efficient.  We  cannot  gain  strength  by 
lying  abed  and  looking  at  the  ceiling.  We  must  exercise,  and  in  order  for 
a  city  to  exercise  its  functions  and  learn  to  do  good  municipal  housekeep¬ 
ing  we  should  undertake  to  run  these  necessary  utilities  for  the  benefit  of 
all  concerned. 

Many  of  our  people  take  the  position  that  any  enterprise  that  the  city 
establishes  by  not  less  than  two-thirds  vote,  or  sixty-six  per  cent,  of  its 
people  (in  this  instance  it  was  considerably  more),  should  be  loyally  sup¬ 
ported  by  all  of  the  people,  especially  in  view  of  the  fact  that  the  city  has 
always  given  a  square  deal  to  its  competitor.  In  this  connection,  there  is 
at  this  time  a  standing  offer  on  the  part  of  the  City  for  the  purchase  of  its 
competitor’s  system  in  Pasadena,  which  will  enable  the  company  to  take 
its  money  elsewhere  and  use  it,  leaving  the  entire  field  to  the  City. 

SHOULD  A  CORPORATION  SUPPLY  ITSELF  WITH  A 
SERVICE  THAT  IT  CAN  PRODUCE  CHEAPER  AND  MORE 
EFFECTIVELY  THAN  IT  CAN  PURCHASE  FROM  AN  OUT¬ 
SIDE  SOURCE? 

If  it  is  found  that  a  city  has  a  charter  that  will  permit  it  to  build  and 
efficiently  operate  its  necessary  utilities,  sewers,  jails,  fire  department,  police 
department,  electric  utility,  water  utility,  etc.  (remembering  that  we  are 
not  speaking  of  anything  but  utilities,  privileges  asked  by  private  parties 
for  the  use  of  the  streets  to  make  profit),  cheaper  and  more  effectively  than 
it  can  purchase  this  service  on  the  outside,  what  is  the  objection?  A  private 
corporation  must  necessarily  make  sufficient  profit  to  make  it  attractive. 


18 


In  building  and  operating  these  necessary  utilities,  the  city  does  not 
presume  to  invade  any  field  of  operation  that  properly  belongs  to  private 
interests;  it  only  seeks  to  perform  for  itself  a  service  that  it  can  perform 
better  than  it  can  be  purchased  for  from  those  who  enjoy  special  grants  and 
privileges  to  use  our  streets  and  public  places  for  profit.  The  benefits  result¬ 
ing  to  the  people  of  Pasadena  from  owning  and  operating  their  sewer  system 
are  apparent.  Is  there  anyone  who  would  turn  this  over  to  private  parties 
to  operate  for  profit?  The  answer  is  most  emphatically  “No”.  Then  why 
should  we  turn  over  any  other  utility  that  is  just  as  important  as  the 
sewer  system,  for  instance  the  water  utility  and  our  elecrtic  supply,  to 
private  parties  to  own  and  operate  for  profit? 

To  deny  that  we  have  the  ability  as  a  municipality  to  own  and  oper¬ 
ate  utilities  of  this  character  is  to  acknowledge  that  we ,  as  a  people,  are  a 
failure  under  democratic  form  of  government.  Who  of  us  would  want 
to  take  this  position?  If  we  will  unselfishly  give  a  part  of  our  time  to  the 
solution  of  our  various  problems  we  can  and  will  evolve  municipal  govern¬ 
ments  that  will  function  in  the  interests  of  all  the  people. 

When  a  city  builds  and  operates  its  various  utilities  it  makes  for  a 
better  class  of  citizenship.  People  take  greater  interest  in  civic  affairs.  It 
brings  all  the  people  in  contact  with  those  who  perform  the  City’s  service 
and  thereby  makes  them  a  part  of  the  organization  as  a  whole.  This  is 
consistent  with  the  argument  that  we  should,  if  possible,  own  our  own 
homes,  thereby  increasing  our  interest  in  civic  affairs,  producing  a  higher 
class  of  citizenship. 

If  the  affairs  of  the  city  are  not  properly  managed  it  is  immediately 
brought  to  the  attention  of  its  owners,  the  people,  and  they  have  the  means 
of  making  all  necessary  corrections.  Those  who  are  opposed  to  the  prin¬ 
ciple  of  a  city  owning  and  operating  these  various  utilities  as  mentioned 
here,  argue  that  the  present  form  of  city  government,  that  is  throughout 
the  United  States,  is  not  suited  to  the  idea  of  owning  and  operating  these 
utilities,  so  far  as  it  relates  to  the  electric,  gas  and  transportation  utilities. 
This  may  be  true  in  part.  However,  it  can  be  corrected,  should  be  cor¬ 
rected  and  must  be  corrected  in  order  to  make  the  operation  of  these  utilities 
successful.  Cities  with  liberal  charters  are  successfully  building  and  oper¬ 
ating  these  necessary  utilities. 

MAKE  THE  NECESSARY  INDUCEMENT  TO  SECURE 
CAPABLE  MANAGEMENT 

Management  may  be  had  on  the  part  of  the  city  by  attracting  to  its 
service  men  who  know  the  business  technically  and  otherwise  of  operating 
these  various  utilities  and  who,  when  under  the  proper  form  of  govern¬ 
ment  are  given  authority,  and  a  reasonable  salary,  to  operate  and  manage 
the  utilities  of  the  character  under  discussion  without  molestation  or  inter¬ 
ference  on  the  part  of  the  professional  politician,  and  those  in  the  emplov 
of  the  private  corporation,  and  further,  those  who  are  not  familiar  with 
the  utilities’  needs  and  methods  of  operation.  Such  men  will  plan  and  pur¬ 
chase  the  best  equipment  to  be  had ;  plants  will  be  built  under  the  most 
advanced  engineering  ideas  and  operated  according  to  the  most  modern 
methods,  with  the  result  that  all  citizens  may  use  the  service  at  the  low 


19 


rates  made  possible  by  reason  of  no  interest  to  be  charged  on  inflated  values. 
In  this  connection,  it  might  be  stated  that  the  men  and  machinery  they  bring 
into  the  service  of  the  city  will  perform  just  as  efficiently  when  employed 
and  owned  by  a  municipality  as  when  employed  and  owned  by  a  private 
corporation. 

BY  WAY  OF  COMPARISON 

In  comparing  the  municipally  owned  utilities  in  some  of  the  larger 
cities  of  the  country  with  those  operated  by  private  interests  in  cities  of  the 
same  class  during  the  period  of  the  war,  it  has  been  found  that  they  show 
up  just  as  well,  and  in  some  they  show  up  better,  than  privately  managed 
plants,  in  spite  of  any  handicap  they  may  have  had,  due  to  the  form  of  gov¬ 
ernment  under  which  they  were  operated.  It  is  notorious  that  one  of  the 
obstacles  to  overcome  in  the  operation  of  these  utilities  on  the  part  of  the 
city,  is  the  tendency  of  interference  with  the  management  on  the  part  of 
the  uninitiated  officials,  who  are  unfamiliar  with  the  complex  business  of 
electric  and  transportation  utilities,  etc. 

HANDICAPS 

In  a  large  number  of  cases,  municipal  charters  have  been  devised  and 
designed  to  prevent  the  successful  conduct  of  the  business  on  the  part  of 
our  municipalities.  In  our  own  Pasadena  we  find  a  restriction  to  purchase 
only  $500  worth  of  materials  or  supplies  without  advertising  for  bids.  This 
has  and  does  cause  considerable  loss  to  the  City  of  Pasadena  in  the  course 
of  a  year.  It  is  true  that  bids  for  small  amounts  of  material  will  not  be 
rendered  at  the  lowest  price,  when  the  bid  is  advertised.  The  same  firm 
will  quote  you  in  private  a  lower  price  than  they  will  make  if  rendering 
a  bid  on  small  amounts  and  quantities  under  the  existing  value  of  $500. 
We  must  learn  to  look  at  results.  This  should  be  increased  where  the  city 
is  operating  utilities  such  as  water,  light  and  power,  to  at  least  $3,000, 
and  in  fact,  it  would  be  better  if  it  were  $5,000.  Frequently  there  is  a 
slump  in  the  market  of  some  material  of  which  the  city  is  in  need,  and 
before  the  invitation  for  bids  can  be  submitted  and  put  through  the  neces¬ 
sary  machinery  the  price  has  shot  up  and  the  city  is  the  loser  by  not  being 
able  to  get  in  on  the  market  at  the  right  time. 

The  people  must  not  lose  sight  of  the  fundamental,  that  they  have 
necessarily  to  trust  somebody  to  do  these  things  for  them,  and  when  oper¬ 
ating  on  as  large  a  business  scale  as  our  own  city  is  today  there  should  be 
sufficient  leeway  to  properly  conduct  the  business  of  the  city,  and  then  judge 
by  results,  always  remembering  that  the  people  have  it  within  their  power 
to  make  any  change  at  any  time  they  wish. 

REGULATION  VS.  MUNICIPAL  OWNERSHIP 

The  principle  of  regulating  privately  owned  utilities  has  been  advanced 
in  place  of  municipal  ownership.  The  public  must  not  lose  sight  of  the 
fact  that  it  requires  as  much  ability  to  successfully  regulate  a  privately 
owned  utility  as  it  does  for  a  municipality  to  own  and  operate  it.  Instead 
of  dissipating  this  energy  on  an  attempt  at  regulation,  which  is  never  satis¬ 
factory  to  the  public  from  the  public’s  standpoint,  it  should  be  used  on  the 
actual  construction  and  operation  of  these  utilities.  The  attempt  at  regula¬ 
tion  often  results  in  the  public  being  regulated  for  the  benefit  of  the  investor. 
It  happens  in  this  way:  Where  the  facts  concerning  the  original  cost  of 


20 


construction  of  a  property  are  not  to  be  had  or  arrived  at,  the  public  is 
called  upon  to  pay  interest  on  obligations  that  were  never  incurred  for  the 
public  use.  We  have  flaring  examples  of  this  in  various  cases  of  attempted 
regulation.  The  private  company  is  entitled  to  a  just  return  on  the  cap¬ 
ital  invested  in  property  and  equipment  necessary  to  the  public  use,  but 
no  more  where  the  proper  return  is  guaranteed  under  regulation.  The 
management  may  have  been  poor  and  inefficient,  unnecessary  investment 
may  have  been  made,  poorly  designed  equipment  and  construction,  an 
over-investment  may  have  been  made  for  the  service  of  the  community, 
due  to  lack  of  judgment  on  the  part  of  the  management,  in  which  case  the 
public  is  asked  to  pay  interest  and  return  for  an  unnecessary  investment 
which,  under  this  condition,  would  be  regulating  the  public  for  the  benefit 
of  the  investor,  the  would-be  investor,  the  promotor  and  speculator.  This 
is  not  a  case  of  what  might  happen,  it  is  a  case  of  what  actually  does  happen. 
It  must  be  conceded  that  companies  seeking  to  serve  the  public  must  take 
their  chances.  Corporations  seeking  to  serve  the  public  in  this  way  must 
know  the  public  requirements  and  not  hope  to  recover  their  losses,  due  to 
poor  judgment  and  ultra-speculation  by  means  of  regulation. 

The  fundamental  cannot  be  ignored,  that  an  investment  made  upon 
a  competitive  basis  in  the  utility  field  cannot  hope  to  be  protected  from 
any  operating  losses  that  may  occur,  whether  due  to  competition  or  the 
improvements  in  the  art.  In  other  words,  the  corporation’s  burden  cannot 
be  transferred  to  the  public  through  a  regulating  body.  This  would  be  the 
most  glaring  kind  of  regulation  of  the  public  for  any  wild-eyed  promotor 
who  might  conceive  of  various  schemes  and  projects  that  would  be  unwork¬ 
able  or  that  might  be  attempted  for  the  public  use. 

The  dividend  on  municipally  owned  utilities  is  always  approximately 
one-third  that  demanded  by  a  private  corporation.  Therefore,  the  rates 
for  the  service  never  can  be  as  low  under  private  ownership  as  under  muni¬ 
cipal  ownership  and  operation,  in  spite  of  the  handicaps  in  cases  where 
unnecessary  interference  may  be  imposed  on  operation  performed  under 
antiquated  charters. 


CURVE  OF  GROWTH 

The  following  curve  shows  the  growth  in  number  of  meters  connected : 


21 


22 


It  may  prove  of  interest  to  include  with  this  the  earnings  by  months 
and  years  since  the  plant  first  started  to  serve  electrical  energy  for  light 
and  power,  which  was  in  October,  1908. 


CHARGES  FOR  COMMERCIAL  LIGHT  AND  POWER  BY 

MONTHS 


1908-09 

1909-10 

1910-11 

1911-12 

1912-13 

1913-14 

July  . 

$  1,749.22 

$ 

3,317.52 

$ 

4,535.51 

$ 

5,216.49 

$  8,193.29 

August  . 

1,866.81 

3,462.30 

4,501.72 

5,231.96 

8,430.17 

September  . 

2,080.90 

3,581.90 

5,080.38 

5,685.79 

9,555.60 

October  . 

.$  218.48 

-  2,515.25 

5,110.07 

6,104.67 

6,832.02 

10,231.96 

November  . 

812.95 

2,766.82 

6,105.17 

7,384.30 

7,805.32 

11,546.71 

December  . 

.  1,558.57 

4,091.48 

7,376.40 

8,084.37 

8,634.56 

11,641.08 

January  . 

.  2,148.30 

4,775.89 

8,328.90 

9,536.96 

9,993.86 

13,566.01 

February  . 

.  1,934.04 

4,771.60 

7,775.96 

8,396.17 

9,329.06 

12,307.31 

March  . 

.  1,999.08 

4,852.26 

7,788.91 

8,107.70 

8,630.21 

10,796.24 

April  . 

.  1,874.48 

4,520.59 

6,784.79 

7,753.20 

8,367.11 

10,506.03 

May  . 

.  1,686.24 

3,457.37 

5,741.51 

6,145.77 

7,286.10 

9,889.11 

June  . . 

.  1,808.55 

3,046.09 

5,146.96 

5,758.81 

8,354.35 

9,038.42 

Total . 

.$14,040.69 

$40,494.28 

$ 

70,520.39 

$  81,389.56 

$  91,366.83 

$125,701.93 

*City  Depts.  . . . 

.  1,271.51 

1,129.80 

1,068.34 

1,381.10 

1,810.65 

2,155.62 

Street  Lighting. 

.  30,563.56 

33,311.24 

38,422.37 

40,714.45 

45,711.93 

48,573.75 

Total  ; . 

,$45,875.76 

$74,935.32 

$110,011.10 

$123,485.11 

$138,889.41 

$176,431.30 

1914-15 

1915-16 

1916-17 

1917-18 

1918-19 

July  . 

$  8,559.72 

$ 

9,642.39 

$ 

10,621.59 

$ 

12,908.90 

$  14,919.02 

August  . 

8,797.04 

10,099.61 

10,940.66 

12,761.83 

13,694.62 

September  . 

9,143.89 

11,114.63 

12,001.61 

14,223.28 

14,403.67 

October  . 

10,917.59 

12,831.51 

13,963.97 

16,132.23 

15,359.91 

November  . 

12,159.62 

13,581.21 

16,763.69 

17,497.51 

17,340.12 

December  . 

13,910.99 

14,994.02 

18,768.01 

18,928.69 

19,600.78 

January  . 

15,182.12 

17,777.69 

22,044.65 

19,780.42 

21,078.00 

February  . 

13,994.49 

15,334.47 

19,480.07 

18,988.12 

20,698.29 

March  . 

12,848.62 

14,542.54 

18,639.31 

17,495.89 

19,475.17 

April  . 

12,559.19 

13,822.20 

16,771.44 

16,907.94 

18,413.76 

May  . 

,  10,938.99 

12,075.41 

14, 055. 8-1 

13,926.81 

17,218.44 

June  . 

.  10,161.83 

11,797.93 

13,876.29 

13,462.47 

19,221.30 

Total . 

$139,174.09 

$157,613.61 

$187,927.10 

$193,014.09 

$211,423.08 

City  Departments  . 

2,463.26 

2,638.93 

2,989.06 

3,216.10 

3,853.79 

Street  Lighting 

51,729.44 

54,039.97 

57,698.01 

59,554.14 

56,276.76 

Total  . 

.$193,366.79 

$214,292.51 

$248,614.17 

$255,784.33 

$271,553.63 

*Not  including  Water  Department. 


STREET  LIGHTING 

Our  street  illumination  has  increased  since  the  Department  began 
furnishing  electrical  energy  for  street  lighting  1005.8  per  cent,  and  the 
cost  of  street  lighting  has  only  increased  225  per  cent. 

A  reduction  in  street  lighting  rates  has  been  made  as  given  below: 

80  C.  P.  Street  Series  Mazdas . $12.00  per  year 

100  C.  P.  Street  Series  Mazdas .  15.00  per  year 

400  C.  P.  Street  Series  Mazdas .  45.00  per  year 

600  C.  P.  Street  Series  Mazdas .  50.40  per  year 

All  ornamental  lighting . 031/4  per  kwh. 

The  area  of  the  city  did  not  increase  until  1914,  when  it  was  expanded 
by  annexing  certain  territory  1.8%  ;  also  in  1916,  when  it  expanded  0.35%  ; 
and  again  in  1917,  when  it  expanded  0.57%. 

The  following  chart  shows  graphically  the  increase  in  street  illumina¬ 
tion. 


23 


650000  PASADENA  MUNICIPAL  LIGHTING  DEPARTMENT 

1918-19 

1917-18 

1 

1916-17 

H 

1 

lO 

i— 1 

CD 

r— 1 

LIGHTS 

Uj 

1 — \ 

1 

rH 

rH 

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CD 

rH 

pq 

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to 

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CD 

i — 1 

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Ph 

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-07 

1911-12 

9 

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Hi 

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to 

O 

cd 

i — 1 

Eh 

IT-0T6T 

EH 

O 

Eh 

C*3 

55 

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Hi 

Ph 

Hi 

Ph 

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1909-10 

O 

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CO 

U 

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1 

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1908-09 

Km 

oa 

auc 

:nv; 

) 

o 

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rv* 

Ph 

CO 

o 

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£> 

o 

CD 

rH 

000009 

550000 

500000 

450000 

o 

o 

o 

o 

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LQ 

CQ 

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CO 

250000 

200000 

150000 

0000CI 

50000 

1906-07 

COMPARISON  WITH  NEIGHBORING  CITIES 


It  may  be  of  interest  at  this  time  to  touch  upon  the  negotiations  that 
were  entered  upon  for  the  purchase  of  the  distributing  system  of  the  City’s 
competitor  in  Pasadena  and  the  purchase  of  electrical  energy,  in  August, 
1917. 

As  far  back  as  1909  the  City  of  Pasadena  had  an  understanding  with 
the  City  of  Los  Angeles  Power  Bureau  that  it  would  purchase  electrical 
energy  from  the  City  of  Los  Angeles  when  their  hydro-electric  system  was 
completed  and  put  into  commission.  At  that  time  the  question  was  taken 
up  with  a  view  of  changing  the  frequency  of  additional  equipment  consist¬ 
ing  of  prime  movers,  or  generators,  in  the  power  plant  of  Pasadena  to 
conform  to  the  frequency  at  which  the  City  of  Los  Angeles  would  gen¬ 
erate  electrical  energy.  The  City  having  started  out  with  sixty  cycle  equip¬ 
ment  at  this  time  changed  to  fifty  cycles,  the  special  frequency  adopted  in 
Southern  California.  Therefore  it  was  always  understood  and  expected 
that  the  City  of  Pasadena  would  ultimately  buy  hydro-electric  energy  from 
the  City  of  Los  Angeles  at  a  price  cheaper  than  that  for  which  the  City  of 
Pasadena  could  generate  it. 

However,  as  in  this  case  the  unexpected  often  happens.  On  April 
30,  1917,  the  city  officials  of  Los  Angeles  entered  into  a  contract  with  the 
Southern  California  Edison  Company,  leasing  the  Company’s  distributing 
system  for  a  period  of  two  years,  with  an  agreement  to  purchase  same  at 
the  end  of  two  years,  subject  to  the  vote  of  the  people.  The  contract 
provided  that  the  city  was  to  buy  power  from  the  Southern  California 
Edison  Company  for  a  period  of  ten  years.  The  City  also  agreed  to  sell 
surplus  power  to  the  Southern  California  Edison  Company  as  provided  for 
under  Section  5,  pages  9-10,  as  follows: 

“The  City  agrees  that,  if  at  any  time  during  the  period  of 
fifteen  (15)  years  from  the  date  of  this  agreement,  it  shall  gener¬ 
ate  electric  energy  in  excess  of  the  quantity  required  by  it  for  dis¬ 
tribution  within  the  corporate  limits  of  the  City  of  Los  Angeles, 
as  they  may  exist  from  time  to  time,  it  will  notify  the  Companies 
that  it  has  such  surplus  energy  for  sale,  and  the  Companies  shall 
have  the  right  to  purchase  during  the  period  for  which  such  sur¬ 
plus  energy  shall  be  available,  all  or  any  fractional  part  of  such 
surplus  electric  energy  at  a  fair  and  reasonable  price,  to  be  agreed 
upon  by  the  parties,  and,  in  case  they  cannot  agree,  then  on  appli¬ 
cation  of  either  party,  the  same  shall  be  fixed  by  the  Railroad 
Commission  of  the  State  of  California,  or  such  other  body  as  shall 
have  the  fixing  of  electric  rates  in  charge,  provided,  the  Com¬ 
panies  shall,  within  thirty  (30)  days  from  receipt  of  such  notice 
from  the  City,  notify  the  City  in  writing  of  their  election  to  exer¬ 
cise  their  right  to  purchase  such  energy.  The  City  shall  be  at 
liberty  to  sell  to  any  other  person  or  corporation,  such  part  of 
such  surplus  energy  as  the  Companies  shall  not  elect  to  purchase 
as  aforesaid.” 

This  was  indeed  disappointing;  to  many  it  looked  as  though  further 
co-operation  on  the  part  of  the  City  of  Los  Angeles  could  not  be  expected, 
inasmuch  as  that  City’s  representatives  failed  to  live  up  to  their  agreement, 


25 


regardless  of  all  the  City  of  Pasadena  had  done  in  the  way  of  co-operation 
with  Los  Angeles.  Under  the  terms  of  this  contract  any  surplus  power 
would  always  be  taken  by  the  Southern  California  Edison  Company,  and 
therefore  there  would  be  nothing  left  for  the  City  of  Pasadena. 

At  this  time  the  war  was  on  and  the  City  of  Pasadena  was  paying 
$1.55  per  barrel  for  fuel  oil.  The  necessity  for  the  conservation  of  fuel 
oil  was  being  strongly  urged  by  officials  at  Washington  for  the  purpose  of 
winning  the  war.  Yet  we  did  not  receive  any  hydro-electric  power  from 
the  City  of  Los  Angeles  to  give  relief  as  had  been  promised  and  which 
would  have  aided  greatly  in  conservation  of  fuel  oil. 

To  make  a  long  story  short,  Pasadena  was  ignored  on  the  part  of 
those  officials  who  were  responsible  for  the  failure  in  carrying  out  the 
proposed  arrangement  made  previously.  Negotiations  were  started  with  a 
view  of  purchasing  the  Southern  California  Edison  Company’s  system  in 
the  City  of  Pasadena,  at  the  same  time  purchasing  hydro-electric  energy 
at  a  price  of  $.0085  scaling  down  to  what  would  have  been  approximately 
.008  per  kwh.,  depending  upon  quantity  consumption.  When  it  began  to 
look  as  though  there  might  be  a  possibility  of  the  City’s  competitor  agree¬ 
ing  to  such  terms  that  might  be  acceptable  to  Pasadena,  some  of  the  Los 
Angeles  officials  who  had  always  before  been  in  favor  of  carrying  out  the 
contract  with  Pasadena,  urged  that  renewal  of  application  be  made  for 
hydro-electric  power.  This  was  done  on  October  25th.  However  there 
was  no  reply  made  to  this  until  the  21st  of  November,  nearly  a  month. 
At  that  time,  however,  things  had  worked  around  to  the  point  where  it 
looked  as  though  we  could  once  more  expect  and  depend  upon  co-operation 
on  the  part  of  the  City  of  Los  Angeles,  the  result  being  that  an  offer  was 
made  to  supply  the  City  of  Pasadena  with  electric  energy  at  .0065  per 
kwh.  Our  previous  arrangement  had  been  for  current  at  a  rate  somewhat 
lower. 

The  City  of  Los  Angeles  was  informed  of  the  negotiations  that  were 
in  process  with  the  City’s  competitor.  We  could  not  honorably  withdraw, 
as  certain  terms  had  been  agreed  upon,  which  if  approved  by  the  Southern 
California  Edison  Company,  meant  that  the  City  would  lease  their  dis¬ 
tributing  system  in  Pasadena  for  a  period  of  two  years,  or  longer,  if  the 
war  continued.  At  the  end  of  that  time,  or  after  the  war,  we  were  then 
to  submit  the  proposition  to  the  people  of  Pasadena  for  approval.  There¬ 
fore,  with  this  understanding,  a  contract  for  power  was  entered  into  with 
the  City  of  Los  Angeles,  subject  to  cancellation  on  thirty  days’  notice  by 
either  party. 

This  arrangement  was  in  force  until  the  final  contract  was  made  on 
February  6,  1919,  for  a  period  of  fifteen  years,  the  Railroad  Commission, 
in  the  meantime  having  disapproved  of  the  contract  that  the  City  had  agreed 
to  make  at  the  time  the  City  of  Los  Angeles  failed  to  live  up  to  their  con¬ 
tract  and  previous  promises  with  reference  to  supplying  Pasadena  with 
electrical  energy.  The  terms  of  the  proposed  contract  with  the  Southern 
California  Edison  Company  were  such  that  the  rates  could  not  be  increased. 
This  point  was  insisted  upon  by  Pasadena,  and  inasmuch  as  the  Railroad 
Commission  refused  to  not  guarantee  any  increase  in  rates,  this  excused 
the  City  from  further  negotiations  with  the  Southern  California  Edison 
Company  for  the  purchase  of  electric  energy.  Tn  the  meantime  the  two 


cities  had  gotten  together,  as  had  always  been  the  plan  that  they  should,  and 
the  contract  was  made  with  the  City  of  Los  Angeles,  February  6,  1919, 
for  a  period  of  fifteen  years,  for  surplus  electric  energy  at  a  rate  not  to 
exceed  .007,  which  provides  for  the  maintenance  of  the  City’s  steam  plant, 
not  only  for  our  own  use,  but  for  supplying  electric  energy  to  the  extent 
of  our  peak  load  demand  for  the  City  of  Los  Angeles  at  such  times  as 
may  be  required,  due  to  emergency. 

This  brief  reference  to  the  former  understanding  that  the  City  has 
always  had  with  the  City  of  Los  Angeles,  is  made  here  with  a  view  of 
clearing  up  any  misunderstanding  on  the  part  of  some  of  our  citizens. 
Pasadena  had  anticipated  for  a  long  time  the  purchase  of  electrical  energy 
from  the  City  of  Los  Angeles  and  certain  Los  Angeles  officials  had  always 
hoped  that  the  two  cities  would  work  harmoniously  together,  until  some¬ 
body  began  to  throw  monkey  wrenches  into  the  machinery,  metaphorically 
speaking.  And  in  this  connection,  there  is  on  file  at  the  City  Hall  all 
records  covering  the  entire  history  of  all  negotiations,  which  are  accessible 
at  any  and  all  times  to  those  who  may  want  to  read  the  communications 
on  the  entire  subject. 

FINAL  OFFER  OF  THE  CITY  TO  PURCHASE  ITS  COMPET¬ 
ITOR’S  SYSTEM  IN  PASADENA 

The  people  of  the  City  of  Pasadena,  those  who  have  supported  this 
utility  when  it  cost  something  to  support  it,  feel  that  the  City  should  occupy 
the  entire  field,  and  that  there  should  be  no  competition,  and  in  view  of 
the  success  of  their  enterprise  in  competition  with  a  strong  competitor  they 
realize  that  if  the  City  can  make  a  success  in  competition  it  can  make  a 
greater  success  by  occupying  the  entire  field.  Therefore,  the  City  Com¬ 
mission  has  made  a  formal  offer  to  purchase  the  distributing  system  and 
substation  of  the  Southern  California  Edison  Company,  the  City’s  com¬ 
petitor  in  the  City  of  Pasadena,  and  it  is  hoped  that  the  offer,  which  is 
based  upon  the  Company’s  valuation,  and  takes  into  consideration  the 
amount  of  business  that  the  Company  would  turn  over  to  the  City,  will  be 
accepted,  thus  giving  the  City  the  entire  field,  thereby  resulting  in  greater 
benefits  to  its  owners. 

Some  of  the  benefits  resulting  would  be  greater  net  earnings  at  the 
same  rates  now  charged  after  the  business  of  the  City’s  competitor  was 
consolidated  with  its  own,  which  in  time  would  enable  the  City  to  make 
the  sale  of  electric  energy  at  a  lower  rate  than  would  be  possible  with  the 
business  divided  as  it  is  now.  The  consolidation  of  the  two  businesses,  all 
of  it  being  operated  by  the  City,  would  give  greater  diversity  and  a  lessen¬ 
ing  of  expenses  in  the  distribution  of  all  electric  energy  used  in  Pasadena, 
as  compared  with  the  operation  of  two  systems.  Furthermore,  the  unsightly 
pole  lines  would  be  reduced  fifty  per  cent.  The  tendency  after  the  City 
occupies  the  entire  field  will  be  to  go  underground  when  and  wherever 
possible,  making  the  cost  of  the  conduit  system  much  less  for  one  system 
than  for  two,  as  has  been  the  experience  in  the  past  where  the  conduit 
systems  have  been  installed,  providing  space  for  two  power  systems.  The 
pole  lines  can  be  erected  in  some  sections  of  the  City,  where  one  Company 
occupies  the  field,  on  the  rear  of  the  property  without  detriment  or  unsight¬ 
liness,  thus  cleaning  up  the  streets  of  superfluous  poles. 


ENLARGING  IN  ADVANCE  OF  GROWTH 


The  City  is  engaged  at  the  present  time  in  enlarging  the  switchboard 
equipment  in  its  power  plant,  with  a  view  of  receiving  continuously  electric 
energy  from  the  City  of  Los  Angeles,  and  operating  the  steam  plant  in 
emergencies.  This  entails  moving  and  replacing  of  switch  gear  and  switch¬ 
board  equipment,  providing  all  necessary  equipment  for  the  future,  as  well 
as  the  present.  In  view  of  the  Department’s  obligation  to  return  a  stipu¬ 
lated  sum  of  money  to  the  City  as  retirement  of  its  obligations,  which  are 
the  same  or  equivalent  to  redeeming  bonds,  the  power  plant  building  which 
was  planned  will  not  be  built  this  year,  possibly  not  for  several  years  yet. 
In  a  way,  it  is  an  advantage  that  the  City  has  not  erected  a  permanent 
power  plant  building,  because  anything  built  at  the  beginning  would  have 
been  inadequate  at  this  time. 

The  Department  is  constantly  purchasing  distribution  equipment, 
reinforcing  the  lines,  adding  additional  copper,  larger  transformers,  and 
providing  for  the  future  growth  of  the  City. 

The  Department  is  not  only  supplying  electric  energy  to  the  City 
itself,  but  it  is  supplying  neighboring  unincorporated  territory  to  a  limited 
extent.  However,  the  Department  has  a  perpetual  franchise  for  supplying 
electric  energy  in  the  City  of  South  Pasadena  and  is  supplying  part  of  the 
latter  city  at  the  present  time,  but  not  the  entire  city. 

AIDING  A  NEIGHBORING  CITY 

It  may  be  of  interest  to  know  that  Pasadena  supplied  the  City  of  Los 
Angeles  with  electric  energy  for  redistribution  before  they  started  their 
hydro-electric  power  plant.  In  this  way  we  lent  our  co-operation  to  the 
City  of  Los  Angeles,  at  the  inauguration  of  their  hydro-electric  system. 

SERVING  ITS  CUSTOMERS 

As  has  been  stated,  the  Department  seeks  to  aid  its  customers  in  the 
solution  of  their  electric  problems  wherever  possible.  It  was  for  this 
reason  that  the  Mazda  lamp  was  first  adopted  and  recommended  to  all 
customers  of  this  Department  because  of  the  saving  effected,  and  the 
increased  illumination  for  less  money,  as  compared  with  the  old  style  lamps. 
At  this  time  the  Department  is  selling  Mazda  lamps  at  cost  to  its  customers. 

ITS  SPONSORS 

No  mention  will  be  made  at  this  time  of  the  individual  names  of  those 
who  have  so  loyally  supported  the  light  and  power  system,  because  the  list 
is  so  numerous  that  it  would  be  impossible  without  the  possibility  of  over¬ 
looking  some  accidently  which  might  be  taken  as  an  intentional  slight. 
However,  I  wish  to  refer  to  those  who,  living  in  obscurity,  as  it  were,  have 
always  supported  this  enterprise,  even  though  it  cost  them  money  that 
they  could  ill  afford  to  lose.  There  are  people  living  in  the  City  of  Pasa¬ 
dena  who  have  sacrificed  the  rent  of  their  property  for  the  sake  of  main¬ 
taining  the  service  with  the  municipal  light  system;  widows,  whose  sole 
support  was  from  such  properties,  have  made  this  sacrifice  to  the  knowl¬ 
edge  of  the  writer.  This  is  standing  for  a  patriotic  principle,  when  it  costs 
real  money  .to  do  so,  and  is  one  of  the  tests  of  real  and  true  patriotism. 
Most  people  are  patriotically  inclined,  but  when  there  is  a  clashing  of 
interests  there  is  a  type  of  citizen  who  will  not  allow  his  patriotism  to 
interfere  with  his  pocketbook. 


28 


With  the  help  of  the  loyal  supporters  and  patrons,  and  consistent 
advocates  of  the  City’s  electric  utility,  from  a  modest  beginning  in  1907, 
when  electric  energy  for  street  lighting  only  was  supplied,  the  City’s  electric 
utility  has  been  built  up  from  nothing,  as  it  were,  to  a  magnificent  prop¬ 
erty  supplying  electric  energy  at  this  time  through  11,312  meters,  not¬ 
withstanding  the  severest  kind  of  competition  from  its  competitor. 

AMPLE  CAPACITY 

The  system  has  a  plant  capacity  double  the  present  demand,  and 
considerable  margin  of  capacity  in  the  entire  distributing  system  for  taking 
care  of  additional  business. 

It  has  always  been  the  policy  of  the  Department  to  make  preparation 
for  taking  care  of  increased  business  that  could  be  had,  due  to  new  build¬ 
ing  and  additional  industries,  or  other  demands  that  might  be  made  upon 
the  Department  for  service.  This  was  done  by  extending  the  lines,  after 
the  property  was  well  started,  into  all  parts  of  the  City,  until  there  is  no 
unsupplied  demand  for  electric  energy  from  this  utility;  tha^  is  to  sav, 
there  are  no  applicants  for  electric  service  within  the  city  limits  that  the 
Department  has  not  been  able  to  supply. 

BY  WAY  OF  COMPARISON 

We  know  things  by  comparison.  The  operating  results  of  the  City’s 
electric  utility  have  had  to  stand  the  double  acid  test  by  way  of  com¬ 
parison.  In  this  particular  it  has  been  raked  fore  and  aft,  plowed  deep, 
cross-plowed  and  double  harrowed,  X-rayed  from  above  and  below,  and 
audited  by  every  known  method  this  side  of  China,  with  the  result  that 
the  more  it  is  compared  the  better  the  showing.  The  results  and  benefits 
obtained  show  up  considerably  better  than  all  of  the  promises  made  for 
them. 

All  of  the  predictions  made  by  its  opponents  have  failed,  and  after 
twelve  years  strenuous  uphill  pull,  it  has  arrived  with  great  credit  to  its 
patrons  and  owners,  having  achieved  by  their  loyal  support  more  than  its 
advocates  had  hoped  for  in  overcoming  all  obstacles  and  operating  under 
surrounding  conditions.  It  is  a  very  great  satisfaction  for  Pasadena  to 
have  proved  in  so  short  a  period  that  the  predictions  and  prophesies  ad¬ 
versely  made,  were  without  foundation.  The  success  of  this  city’s  enter¬ 
prise  demonstrates  what  can  be  accomplished  when  a  municipal  family  acts 
with  concert  of  purpose.  Co-operation  is  necessary  in  the  building  of  a 
city,  achieving  in  its  development  an  increasingly  ideal  home  life  for  all 
of  its  citizens.  In  such  an  organized  effort  there  is  no  place  for  the  eternal 
knocker,  the  pessimist,  the  man  who  never  can  see  any  good  or  possible 
results  in  anything  that  a  city  undertakes  to  accomplish. 

In  Morris  Llewellyn  Cooke’s  book,  “Our  Cities  Awake,”  is  found 
the  following  comment  by  Lincoln  on  good  citizenship : 

“I  like  to  see  a  man  proud  of  the  place  in  wThich  he  lives.  I  like  to 
see  a  man  live  in  it  so  that  his  place  will  be  proud  of  him.  Be  honest,  but 
hate  no  one;  overturn  a  man’s  wrong-doing,  but  do  not  overturn  him 
unless  it  must  be  done  in  overturning  the  wrong.  Stand  with  anybody 
that  stands  right,  and  part  with  him  when  he  goes  wrong.” 


29 


SOME  OF  THE  THINGS  TO  BE  CONSIDERED  ON  THE  PART 
OF  A  CITY  IN  ATTEMPTING  TO  INAUGURATE  THE 
BUILDING  AND  OPERATION  OF  AN  ELECTRIC  OR 
OTHER  UTILITY. 

FIRST :  Secure  the  services  of  an  engineer  who  has  an  established 
reputation  in  serving  the  public’s  interests,  one  who  is  free  from  alliances 
with  private  utility  companies,  in  order  that  he  may  serve  the  city  whole 
heartedly  and  without  fear  or  favor  of  any  clientele.  In  other  words, 
one  who  will  give  the  city  all  the  facts  and  safely  guide  the  city  in  a  matter 
of  this  kind. 

After  the  plant  has  been  built  and  put  into  operation  it  should  be  put 
under  the  care  of  a  competent  manager  and  engineer,  and  if  he  gets  results 
let  him  alone  and  protect  him  from  interfering,  well-meaning,  but  over- 
officious  and  meddlesome  politicians.  If  he  does  not  get  the  results,  after 
a  reasonable  period,  comparing  his  results  with  other  similar  utilities,  fire 
him  and  put  someone  else  in  his  place,  with  the  same  authority,  which  must 
not  be  divided  for  the  purpose  of  obtaining  the  results  desired. 

In  any  good  business  organization  there  is  always  a  head.  This  must 
be  an  actual  head,  without  interference.  He  must  have  initiative  and 
possess  the  knowledge  and  judgment  necessary  to  successfully  manage  the 
business  and  be  given  full  authority  to  proceed,  and  a  salary  in  keeping 
with  the  responsibility.  The  results  will  be  success.  A  poor  plan,  well 
worked,  is  better  than  the  very  best  plan  interfered  with.  Most  failures 
in  municipal  ownership  are  traceable  to  somebody’s  shirking,  or  interfer¬ 
ence.  Where  responsibility  is  expected,  authority  must  be  given.  There 
must  be  no  clashing  of  departments.  Cities’  charters  must  be  so 
changed  as  to  allow  the  utility  to  be  properly  operated  without  interference 
from  any  other  department.  The  management  must  be  given  absolute  con¬ 
trol  over  the  service  from  the  place  of  generation  to  the  place  of  consumption, 
including  every  phase,  that  of  accounting  as  well.  The  benefits  and  results 
will  be  in  proportion  to  the  service  rendered,  and  in  order  to  render  the 
proper  service  the  management  must  be  given  authority  to  supervise  the 
service  in  every  detail. 

A  newly  elected  official  must  not  feel  that  when  he  comes  into  office 
the  public  desires  him  to  first  upset  the  departments  coming  under  his 
direction.  It  is  true  he  is  the  elected  representative  of  the  people,  but  he 
is  not  serving  the  people  to  the  fullest  advantage  if  he  interferes  with  the 
well  organized  departments  without  justification.  If  a  department  is  not 
giving  results  he  is  justified  in  directing  that  such  changes  as  are  necessary 
to  give  results  be  made.  However,  he  must  first  be  sure  that  he  is  acting 
in  the  right  direction.  In  fact,  it  would  be  well  for  him  to  call  in  consult¬ 
ing  advice  in  order  that  no  mistake  be  made.  Employees  of  municipal 
utilities  should  be  treated  the  same  as  under  civil  service  rules,  if  the  city 
is  not  working  under  civil  service  regulations.  That  is,  their  positions 
should  be  secure  as  long  as  they  discharge  their  duties  efficiently. 


30 


If  a  city  will  be  guided  by  the  above  principle  they  may  expect  the 
following  advantages  in  the  operation  of  a  municipally  owned  utility,  as 
compared  with  a  private  utility: 

A  high  class  service  at  the  lowest  price. 

There  is  no  watered  stock  or  inflation  upon  which  interest  must  be 

paid. 

Interest  ceases  as  the  bonds  are  paid  off,  and  when  all  of  the  bonds 
are  paid  off,  interest  ceases  entirely. 

A  municipality  can  borrow  money  at  a  very  much  lower  rate  of 
interest  than  a  private  corporation. 

The  overhead  expenses  are  lower. 

The  City  is  not  supposed  to  play  favorites,  and  it  will  be  found  that 
less  discrimination  is  shown  on  the  part  of  municipally  owned  utilities  than 
with  private  corporations. 

Municipal  utilities  are  run  for  service  at  what  it  costs  to  produce  the 
service,  not  for  profit  or  excess  dividends. 

In  operating  a  municipal  utility  for  service,  the  customer  pays  exactly 
what  it  costs,  and  delights  in  doing  so. 

A  successful  municipally  owned  and  operated  utility  is  the  proof  of 
democracy. 

Before  a  city  builds  a  utility  in  competition  with  an  existing  privately 
owned  utility,  every  effort  should  be  made  to  first  acquire  the  private  utility 
property.  And  if  it  is  not  possible,  under  fair  and  equitable  means  to 
acquire  the  existing  utility,  then  the  city  is  justified  in  paralleling  the  exist¬ 
ing  system. 

And  in  this  connection  the  city  must  have  the  advice  of  an  engineer 
who  will  give  the  facts,  and  as  stated  above,  is  not  so  allied  with  private 
interests  that  he  is  unable  to  give  an  unbiased  report  to  and  for  a  muni¬ 
cipality  on  a  matter  of  this  kind. 

GENERAL  INFORMATION 

Plant  Equipment  consists  of  2213  H.  P.  in  boilers  B.  &  W.  and 
Stirling  type;  2000  H.  P.  in  cross  compound  condensing  engines;  6200 
H.  P.  in  Parsons  type  steam  turbines.  Total  generating  capacity7  approxi¬ 
mately  8000  H.  P. 

Pole  Line  consists  of  the  following  poles: 


70  foot .  7 

65  foot .  9 

60  foot .  174 

55  foot . 168 

50  foot .  534 

45  foot .  1605 

40  foot .  1902 

35  foot .  1786 

30  foot .  255 

25  foot .  126 


Total .  6566 


31 


Number  of  service  connections,  9551. 

Number  of  transformers  825,  equivalent  to  9396  K.W.  capacity. 

Number  of  meters  12,720,  equivalent  to  13,653  K.W.H.  capacity,  of 
which  1  1,327  are  in  service. 

Underground  system  5.91  miles,  complete  system  for  both  commercial 
and  street  lighting  service. 

Eight  miles  of  33,000  volt  transmission  lines,  consisting  of  two  separate 
lines  for  transmitting  power  to  and  from  Los  Angeles. 

Street  lighting  rates  for  ornamental  lighting  are  3*4C  per  K.W.H. , 
the  system  consisting  of  the  following  ornamental  lights: 

152  5-light  ornamental  posts  equipped  with  4  25-watt 
and  1  100-watt  lamps. 

42  5-light  ornamental  posts  equipped  with  4  40-watt 
and  1  60-watt  lamps. 

9  13-light  ornamental  posts  equipped  with  1  40-watt 
and  12  25-watt  lamps. 

35  ornamental  posts  equipped  with  1  600-c.p.  lamp. 

231  ornamental  posts  equipped  with  1  400-c.p.  lamp. 

457  ornamental  posts  equipped  with  1  80-c.p.  lamp. 

871  ornamental  posts  equipped  with  1  60-watt  lamp. 

48  ornamental  posts  equipped  with  1  100-watt  lamp. 

Saving  resulting  to  the  people  by  reason  of  the  difference  in  rates 
$1,700,856.58  to  June  30,  1919. 

It  is  the  policy  of  the  management  of  the  Department  to  make  the 
compensation  for  those  vho  serve  the  city  in  this  Department  what  it  should 
be  for  high-class  and  efficient  service. 


TYPE  OF  ORNAMENTAL  STREET  LIGHTING 


INDEX 

Pages 

Balance  Sheet . .12-13 

Bond  Issues  .  3 

Commercial  Light  and  Power  bv  Months .  23 

Curve,  Showing  Candle  Power  of  Street  Lights .  24 

Curve,  Showing  Increase  in  Consumers.  .  . .  22 

Curve,  Showing  Rates .  17 

Offer  to  Purchase  Competitor’s  Distributing  System .  27 

Saving  to  People . 14 

Schedules  of  Rates . 15-16 

Street  Lighting  Rates . 23 

Summary  of  Twelve  Years’  Operation .  16 


3  0112 


398432716 


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MUNICIPAL  PRINTING 
DEPARTMENT 


PASADENA.  CALIFORNIA 


